Hackers Steal $70M in Tokens from CoinEx; Exchange Promises Full Compensation to Affected Users
Summary:
Hong Kong-based CoinEx exchange has reported a security breach where hackers stole over $70 million in tokens using compromised private keys. The exchange is working to restore operations and plans to compensate affected users in full. CoinEx has suspended withdrawal services to mitigate further losses, patched system vulnerabilities, and transferred the remaining assets from the compromised hot wallets. Blockchain security companies suspect the North Korean "Lazarus Group" is behind the breach. CoinEx is focused on creating a new and robust wallet system to handle operations within its 211 chains and 737 assets.
CoinEx, a cryptocurrency exchange headquartered in Hong Kong, has reported that a security breach through stolen private keys has resulted in hackers making off with over $70 million in tokens. The CoinEx team is working on opening dialogue channels to retrieve the lost assets while they proceed with rebuilding a novel wallet system to recompense affected users and restore the operation of the platform.
Despite the staggering $70 million theft, CoinEx assures that this figure constitutes a minor proportion of its aggregate assets. The exchange has committed to wholly reimbursing the users who have been impacted.
CoinEx announced its resolution to gradually reinstate withdrawal services within a week, once they are certain of the full security of assets prior to kick-starting withdrawal functions.
The identity of the malefactors behind the security violation remains a mystery, while certain blockchain security companies suspect the involvement of North Korean hacker group - "Lazarus Group". CoinEx has opened channels of communication with the hackers, in hopes of reaching a consensus beneficial to both parties.
Preliminary investigation revealed that the origin of the compromise was a hijacked private key for hot wallets used by the exchange to store assets for transactions. In response to the breach, CoinEx suspended its withdrawal services, fixed the system's vulnerabilities, and relocated the remaining assets from the compromised hot wallets. The company anticipates the gradual resumption of withdrawal services in the upcoming week.
CoinEx's focus is currently on creating a sturdy, brand new wallet system to manage operations within the 211 chains and 737 assets. As of September 12, CoinEx first mentioned "odd withdrawals" from one of its hot wallets, commencing with a transfer of 4,947 Ether (ETH). Following this, the hackers started siphoning off hefty amounts of other tokens to a singular address.
The worth of the purloined funds, initially pegged at $27 million, has doubled in the seven days subsequent to the incident. Cryptocurrency spaces have been the favored hunting grounds for North Korean hackers for a few years now, and they've orchestrated some of the largest heists in the domain. The 2022 Axie Infinity Ronin Bridge attack alone resulted in over $650 million being stolen.
Chainalysis, a blockchain analytics firm, speculates the year 2023 will witness a rise in the approximate $340 million worth of cryptocurrency stolen by North Korean hackers, owing to the attribution of the CoinEx and a $41 million breach of the cryptocurrency betting platform Stake.
Published At
9/19/2023 7:48:56 AM
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